US Spectrum Auction a Bonanza
By Christopher Nickson
February 13, 2008
Bids for the US 700 MHz wireless spectrum have far exceeded forecasts, bringing more money into the federal coffers.
The Federal Communications Commission recently put part of the wireless spectrum up for auction, thinking it would bring in $10-15 billion.
Wrong.
So far the bids have totalled a staggering $18.9 billion, according to Vnunet, and according to one company, ABI Research, the demand is so high that "not even the pending recession impacts the bidding process."
What makes it so important? Basically, the whole wireless kingdom has been dominated for years by a certain number of carriers. This auction opens it up to new blood, and it might well be their last chance to have a foothold. It would give cable operators, for instance, the chance to go wireless without relying on existing wireless carriers.
It’s even gained the interest of Google, which is believed to have been bidding on the valuable block C. But they’ll be up against Microsoft, which is bidding via Vulcan Spectrum. If either of those giants win, analysts say, it could alter the entire wireless industry. The winning bid for that is believed to be $4.7 billion.